ENG-1997 — Page 383

CHAPTER 19

TRAVEL AND TOURISM

HONG KONG's travel and tourism industry faced challenges in 1997. After an exceptional increase in visitor arrivals and tourism receipts in 1996, the industry turned down from mid-1997. Contributing factors included the depreciation of currencies in neighbouring economies, the fading '1997' appeal and a 'wait-and-see' attitude.

However, Hong Kong remained the most popular tourist destination in Asia. During the year, the Mainland overtook Japan as the top source market, with arrivals reaching 2.3 million, down 0.6 per cent on 1996. This represented 22 per cent of Hong Kong's total visitor arrivals. Taiwan rose to second place, with arrivals of 1.8 million, down 2.1 per cent, and constituting 17.1 per cent of total arrivals. Visitors from South and South-East Asia were the third-largest market, with 1.5 million arrivals, down by 7.3 per cent. Japan was the fourth-largest market, with arrivals of 1.4 million, a decrease of 42.5 per cent, and constituting 13.2 per cent of the total.

Arrivals from the remaining major market regions were 1.2 million from Europe, Africa and the Middle East down by 8.0 per cent; around 1 million from the Americas up 7.3 per cent; and 400 000 from Australia, New Zealand and the South Pacific down by 7.1 per cent. Total visitor arrivals in Hong Kong in 1997 were 10.4 million, down by 11.1 per cent compared with 1996 -

- but 2 per cent up on 1995.

Travel and tourism was among Hong Kong's largest foreign exchange earners in the service industries, bringing in around $72.1 billion, which was a decrease of 14.7 per cent over 1996. Tourism receipts alone amounted to $69.9 billion, a fall of 15.2 per cent year-on-year.

The Hong Kong Tourist Association

The Hong Kong Tourist Association (HKTA) was established by the government in 1957 to develop Hong Kong as a visitor destination. It promotes the improvement of visitor facilities, secures overseas publicity for the SAR's attractions and advises the government on tourism-related matters. Over the past 40 years, the HKTA has worked closely with both local and international tour operators and travel agents, providing information, support, advice and a host of other services, enabling them to market Hong Kong effectively to their clients.

The chairman and members of the HKTA Board of Management are appointed by the Chief Executive. The association is funded by an annual subvention from the government. It also derives funds from membership dues, sales of publications and souvenirs, and from its own commercial tours. At the end of 1997, the association had 1817 members, comprising airlines, hotels, travel agents, tour operators,

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